Get Rich - Stay Rich - Investing for Monthly Income

Posts Tagged ‘stock and options’

Want To Create A Second Income?

Get Rich Investments, an online leader in helping individuals to create income producing investments, has a newsletter to guide investors seeking a second income.  This is one of the most valuable tools for investors to learn how to create monthly income from stocks and option strategies.

Does the idea of using an income investing strategy to create a second income every month on your funds appeal to you?  Get Rich Investments has created the Get Rich Monthly Income Plan to teach individuals how to create multiple streams of investing income.  This is a low-cost newsletter providing the following services:

    1. A list of “monthly dividend stocks” that pay dividends month after month. These investments can pay more than 10% annually (focus on several 15% yields) and can sometimes be purchased at a discount to net asset value.
    2. A list of covered call trades consisting of high quality stocks such as the S&P 5-star research rating of the best stocks that are recommended as strong buys. These lists are updated each week with select trades added daily.
    3. Low risk investments to minimize market risk and to prevent your portfolio from taking a big lost in such uncertain market environments like we are experiencing today.
    4. We have created a strategy called the Blanket Put that will protect your investment from market downturns. The Blanket Put is your safety blanket to protect your portfolio from market downturns. This is worth the membership fee by itself.
    5. Access to multiple education resources to better learn how to be a more successful investor. Trades don’t end when you make a stock buy, sell a call, or complete the trade. Here we want members to be educated about how to manage a trade and when to take action.

The Get Rich Monthly Income Plan diversifies risk by seeking multiple streams of income. You can create monthly income by: covered call trades, monthly dividend stocks and dividends from owning high quality, conservative stocks. That is multiple streams of income from this simple list as we focus on “cash flow” to the investor to improve your quality of life. This is a true passive side hustle for income.

We have more than 20 years experience in the markets including trading covered calls and monthly income investments.  In addition, we have Masters in Business Administration (MBA) from a top business school and other experience in corporate finance and strategy.  We have authored several books including the original Get Rich – Stay Rich: Investing for Monthly Income that is currently on sale at Amazon and other bookstores around the world. It is important to you that your monthly income is in qualified, experienced investor hands who can be trusted to deliver the best trades.

Learn more about investing for income.

Covered Call and Blanket Put on Walgreen (WAG)

Walgreen covered call and protective put

Click to enlarge

Covered Call and Blanket Put on Walgreens (WAG).

STRATEGY: Look at the November 34 covered call. For each 100 shares of Walgreen Co. (WAG) stock you buy, sell one November 2011 34 covered call option for a 32.15 (33.30 – 1.35) debit or better. That’s potentially a 5.75% assigned return. This stock also pays a dividend which may add another 0.7% to the return. The stocks next ex-dividend date is projected to be 11/17/2011.

The technicals for WAG are bullish with a weak downward trend. The stock is under accumulation with support at 34.55. S&P rates this stock 4 STARS (out of five) – buy.

RISK: To protect you capital, you should look at buying the Apr 2012 33 Put at 3.50. This will limit your downsize to the put strike price of 33. And you can continue to sell calls each month for premium as long as the trade is still working. The initial trade risk is $2.45 (see chart) but this will decrease for each additional call sold in the months following November expiration.  When you exit the covered call you will sell the Apr 2012 33 Put at market value to recoup some of your protective put cost.

S&P research notes: S&P reiterates buy recommendation on shares of Walgreen Co. (WAG). WAG reports Aug-Q operating EPS of $0.57, vs. $0.49, in line with our estimate and $0.02 above consensus from Capital IQ. We believe the shares may experience near-term pressure due to tense contract negotiations with Express Scripts (ESRX) . However, we think an agreement will be reached before expiration or shortly after expiration of the current contract. Due to greater than expected non-pharmacy margin pressures as consumers trade down, we are reducing our FY 12 (Aug.) EPS projection $0.06 to $3.04, and our 12-month target price by $7 to $40, on comparative analysis.